The Nepal Stock Exchange (NEPSE) saw a sharp fall on Thursday, the first trading day after being closed due to the GenZ protest. The drop reflected the low confidence of investors caused by recent unrest.
Within the first minute of trading, the NEPSE index fell by 4 percent. This triggered the first negative circuit, and trading was stopped for 20 minutes.
When trading resumed, the decline became even worse. The index dropped by 5 percent within just two minutes, forcing another circuit. Trading was then suspended for 40 minutes. If the index falls by 6 percent after reopening, all trading will be stopped for the rest of the day. The protest has caused damage to businesses and properties across the country, which has also affected stock investors. Some listed hotels and other companies have faced major losses.
Non-life insurance companies are under heavy pressure. They have already received claims worth more than Rs 30 billion for damages to public and private property, vehicles, and other assets. Because of this, their shares are seeing only sellers, with no buyers in the market.
Analysts warn that the destruction could slow down the country’s economic growth and create risks for GDP. They believe negative circuits could continue until investor confidence improves.
